what will it take , page-23

gents,

they have either stopped paying all bills or are near breakeven at the end of November/beginning December.

They are reducing costs and Power is scheduled to reduce in December with the removal of hired generators due to an upgrade of their existing power plant.The last QTRLY showed a nice drop in power costs/ton milled.No doubt that will be ongoing and have dropped further.

It seems to me the real problem is they are one or two diggers short and another working face of that required to get 3MT of higher grade ore thru the plant.

Their poor performance processing wise they believe is poor management of reagent use and grinding(operator skills),which are easily fixed if that is the main problem and that would have upped copper in concentrate tons by 10% i.e.500Ton last QTR.

Knowing all this ,it is not really surprising to see cash on hand beginning to hold still and all eyes to the QTRLY.

The question becomes if problems solved,more higher grade sulphide ore processed and say 6000Tons of copper in concentrate,where does that leave the economics.
At $7200T x 6000 = $43.2m income
Not impossible when you consider 1/6th of their sept QTR processing was low grade ore of .5%CU average,replace that with sulphide ore at 1% or better and you get near 500T more copper for the same cost.

Their QTRLY indicates costs expected to be $42.8m for this QTR.

DML were quick to call the end to the term sheet with blumont,one wonders if naturally,with these things being addressed,the production situation has changed for the positive,along with the cash flow for December,OR there is another deal in the wings.

If breakeven is 6000T QTR,then i suspect it is possible the 2000T i.e. 500T/week rate may have been reached or got near to in late November.

July production= 1915T 80% recovery Zeta sulphide 91%
concentrator 208Kt processed
August =1815T 75% av recovery and ZETA SULPHIDE 87%
concentrator 225kt processed
Sept leaves = 975T 56% av recovery expected 64% achieved 56%
concentrator 182kT processed.

Mods and refinement with money spent,invoiced next month?

You can read this trend however you like it,the market has the jitters,declining recovery yield.

Appointment of a new mining manager,indicates they were addressing the mining issues in September,one would expect any new hand to be getting on top of it within 2 months.
The new maintenance superintendent must be doing well with costs dropping to $1.88/ton in Sept on lower tons.

Join the dots however you like,I've been buying.

DYOR+DYODD